Shoppers Are Trading Down to Cheaper Coffee Options -- Market Talk

0922 ET - Inflation-weary consumers are looking to save money on their morning brew. Keurig Dr Pepper says its U.S. coffee business is navigating a challenging environment and recovering slower than anticipated, as shoppers more often trade down to lower-cost coffee products. "If you think about it, there have been multiple years of inflation-driven price increases on coffee, and we are seeing heightened value sensitivity in at-home coffee, particularly among the low- and middle-income consumers," CEO Tim Cofer says on a call with analysts. The result: shoppers are gravitating towards ground coffee beans and instant coffee, rather than splurging on single-serve K cups. "In addition, we did see private-label penetration increasing," Cofer adds. Keurig Dr Pepper is off 3.6% premarket. (connor.hart@wsj.com)

(END) Dow Jones Newswires

November 03, 2026 09:22 ET (14:22 GMT)